L-3 Communications Holdings Inc. (LLL - Free Report) announced that the company is planning to close its electron devices facility in San Carlos, CA around 2017 end. Manufacturing operations of the facility will be shifted to North Central Pennsylvania and Los Angeles.
The plan is part of the company’s strategy to increase efficiency across its operations and will be executed throughout 2017.
The electron devices facility has 314 employees at present. They will either be offered a position at one of the two sites under the company or be given a proper notice and severance assistance.
According to the company’s chairman and chief executive officer, Michael T. Strianese, “We are focused on the long-term future of L-3 and are taking strategic, deliberate actions to improve the company’s overall operations and enhance our competitive positions and future growth. We are pursuing these actions with vigor so that we stay aligned with our customers and end users who rely on L-3 products and services.”
Keeping in mind that such decisions have a considerable effect on employees and customers, management has decided to roll out a “phased plan for the gradual consolidation of this facility”. This will ensure smooth implementation of the transition along with maintaining uninterrupted customer service.
L-3 Communications is a pure-play provider of defense electronics and highly engineered products and services.
The company currently has a Zacks Rank #3 (Hold).
Stocks to Consider
A few better-ranked stocks in the aerospace and defense space include Lockheed Martin Corp. (LMT - Free Report) , Engility Holdings, Inc. (EGL - Free Report) and CAE Inc. (CAE - Free Report) , each carrying a Zacks Rank #2 (Buy).
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